An after tax contribution (also known as a non-concessional contribution) is one you have made from your net salary. Your gross salary will have been taxed at the appropriate rate and your nominated contribution will then have been deducted from what is left.
As you have already been fully taxed on this money it will not be taxed again by the superannuation system, either on entry or exit. Any earnings on it will however be subject to taxation in the Fund and assessable for taxation purposes on exit. It is considered a personal contribution for purposes of attracting a Government co-contribution, providing other criteria are met.
A before tax or salary sacrifice contribution (also known as a concessional contribution) is one taken from your gross salary. This option is only available if your employer agrees to it.
The chosen contribution is taken from your gross salary and you are only taxed on what is left. A contribution made in this way is classed as an employer contribution. 15% tax is deducted from the contribution when we receive it and earnings on it will be taxed. It is not considered a personal contribution to qualify for the Government co-contribution.
Salary sacrifice contributions are classed as concessional contributions for contribution limit purposes. Since 1 July 2009 salary sacrifice contributions have been included as assessable income for the purposes of determining your eligibility for the Government co-contribution.
Please refer to our Understanding contribution limits fact sheet to find out how much you can contribute each year without attracting additional tax.